
<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
U.S. ENERGY CORP. FORM 10-Q FOR THE QUARTER ENDED AUGUST 31, 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000101594
<NAME> U.S. ENERGY CORP.
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          MAY-31-1999
<PERIOD-END>                               AUG-31-1998
<CASH>                                       7,401,900
<SECURITIES>                                         0
<RECEIVABLES>                                3,418,100
<ALLOWANCES>                                         0
<INVENTORY>                                    142,300
<CURRENT-ASSETS>                            12,533,600
<PP&E>                                      31,242,500
<DEPRECIATION>                              12,003,800
<TOTAL-ASSETS>                              42,997,400
<CURRENT-LIABILITIES>                        5,670,700
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        75,200
<OTHER-SE>                                  16,121,100
<TOTAL-LIABILITY-AND-EQUITY>                42,997,400
<SALES>                                      1,592,200
<TOTAL-REVENUES>                             2,163,400
<CGS>                                        1,640,700
<TOTAL-COSTS>                                3,651,200
<OTHER-EXPENSES>                             (247,200)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              16,600
<INCOME-PRETAX>                            (1,257,200)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                        (1,257,200)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                               (1,257,200)
<EPS-PRIMARY>                                   (0.16)
<EPS-DILUTED>                                        0
        

</TABLE>
